Needing money to catch up? Find out which is the best option to get your loan, bank or financial.
Getting a good loan at the right time can make quite a difference in people’s lives. With it, you can pay off debts, exchange high rates for cheaper ones, invest in your business, travel, among other benefits. But before you can get the money and use it to your advantage, you need to find an institution that lends you the money. So who is better to get a loan.
Bank or finance?
Better known to most of the population, banks are often the first choice for those who have current accounts and have a good relationship with the manager. The financial companies are very famous for their promises of easy access to credit. No wonder they are especially remembered by those who are negative. Next, learn more about these two types of financial institutions and find out which option is best for you.
How does the bank loan work?
Banks everyone already knows! Considered one of the oldest institutions in the world, it is in them that many people save money, receiving in return the possibility of making various transactions, such as payment of slips, transfers, investment in investments, among others. But what many people do not know is that when we leave money on the account, it does not stand there. In fact, banks use this money to generate more income, and one way to do this is by lending to other customers.
The loan offer is advantageous for the banks. After all, interest rates are charged on the credit amount. However, when it comes to advising who will lend money or not, banks are usually very careful, after all, you can not lend to those who can not pay for what you ask, right? For example, a very common situation is when a bank customer has their accounts in order and the manager calls to offer a loan. As they are more certain that the customer is able to pay, the risk of default is lower. Therefore, the loan terms can also be very advantageous for the customer, with lower rates and more time to repay.
How does the loan work in financial
Slightly less well-known, lenders play a similar role to banks. However, while they work with a broad range of services, financial companies are primarily focused on issuing investments and offering loans. So much so that a more technical name for financial companies is precisely “credit, financing and investment society”.
In practice, like banks, finance companies also borrow money from some (investments) to lend to others (loans). In addition, they are also regulated and supervised by the Central Bank. So if you are thinking about who is best to take out a loan with, it is possible that financial is a good option as you can easily borrow from it! It is worth noting that, for this, you must have an open bank account to receive the money in case of approval.
Bank or finance: Where is it best to apply for a loan?
Since both are regulated and overseen by the Central Bank, in theory, there is not much difference between borrowing through a bank or a lender. However, banks tend to release credit preferentially to those with a higher score, interest rates are often lower.
In contrast, many financial companies specialize in offering loans to negatives. In this case, it is common for the fees charged to be higher to offset the risk of default. But it is this feature that makes them a good alternative for those who are having difficulty getting credit.
Ah! It is very important to note that rates change not only from one institution to another, but also from customer to customer, as each has a banking history and a good paying profile. So while it is common for financiers to work at higher interest rates, the truth is that the only way to know which is better – bank or finance loan – is to look for as many offers as possible and compare!
Loan: bank or financial? Lite Lender has both!
Especially in large cities, it is not easy to move from one financial institution to another in search of a loan. That will say take the trouble to go to as many banks as possible as well as financial ones. So how to find the best credit option?
The answer is to a simulation on the Lite Lender platform, because here we have partnerships with both types of institution. Just run a simulation to receive up to 10 pre-approved credit offers for you to review and compare. This makes it easier to find the most suitable option that fits in your pocket. Make a simulation here! Remembering that the whole process is 100% online and free.